Tesco posts strong full year sales and surge in profit
Tesco has posted a strong full year performance with group sales up 7.4% to £61.5 billion after it benefited from its strategy of price matching on key items against Aldi and the easing of inflationary pressures.
In the 12 months 24 February, retail like-for-like sales in the UK rose by 7.7% while sales in Ireland increased by 6.8%.
While retail adjusted operating profit was up 10.9% to £2.76 billion at constant rates, UK and Ireland adjusted operating profit climbed by 15.7% to £2.67 billion as cost savings offset significant cost headwinds and investments in value, quality and service.
Meanwhile, Tesco’s statutory pre-tax profit climbed to £2.3 billion from the prior year’s £882 million.
Ken Murphy, Tesco chief executive, said; “This strong performance reflects the hard work of colleagues across the whole Tesco Group, and their commitment to serving our customers. Customers are choosing to shop more at Tesco, which is reflected in growing market share as they respond to the improvements we’ve made to the value and quality of our products.
“Inflationary pressures have lessened substantially, however we are conscious that things are still difficult for many customers, so we have worked hard to reduce prices and have now been the cheapest full-line grocer for well over a year.
“We have continued to invest in helping customers where it matters most, cutting prices on more than 4,000 products and doubling down on our powerful combination of Aldi Price Match, Low Everyday Prices and Clubcard Prices.”
Looking ahead to the outcome of the new financial year, Tesco now expects to deliver retail adjusted operating profit of at least £2.8 billion.
Murphy added: “We have strong momentum in our business, and are encouraged by signs of improving consumer sentiment. We’re excited about the opportunities ahead, with the right plans to keep winning with customers, as well as a great team to deliver them.”
